July 26, 2024
New Delhi, India
ITC
ITC Ltd is set to invest ₹20,000 crore across its businesses in the medium term, as announced by Chairman and Managing Director Sanjiv Puri during the company’s 113th annual general meeting on Friday, July 26. This significant investment underscores the company’s confidence in India’s growth trajectory and its aim to enhance its global footprint.
Investment Plans and Confidence in Growth: Sanjiv Puri, while addressing shareholders, expressed ITC’s unwavering confidence in India’s growth story. “Despite headwinds, investments made across all our businesses have positioned ITC to leverage emerging opportunities. Our investment outlay of about ₹20,000 crore in the medium term reflects this confidence,” Puri stated.
Financial Performance: In FY24, ITC reported gross revenue of ₹69,446 crore and a profit of ₹20,422 crore. Notably, non-cigarette revenue now constitutes approximately 65% of the company’s net revenue. Puri highlighted the strong performance of various segments, with the cigarettes business growing at a CAGR of nearly 13.5% over the last two years, surpassing pre-pandemic levels in volume. The hotels business also showed robust growth, with revenue nearing ₹3,000 crore and EBITDA crossing ₹1,000 crore in FY24.
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Value Addition and Strategic Investments: Over the past four years, ITC’s activities have added around ₹24.2 trillion in value, with over ₹16.1 trillion accruing to the exchequer. Puri emphasized the growing competitiveness of ITC’s brands, which has enabled the company to expand its reach to more than 100 global markets. Foreign exchange earnings of ITC and its subsidiaries have more than doubled since FY20, exceeding ₹9,500 crore.
Focus on Proximal Markets and Asset-Light Strategy: ITC is proactively pursuing strategic investments, particularly in neighboring markets. An example is the FMCG facility set up by its subsidiary, Surya Nepal Private Limited. Additionally, ITC Hotels will continue to explore opportunities with a focus on proximal markets as part of its asset-light strategy. Puri also announced the upcoming launch of an ITC hotel in Colombo and significant investments in infrastructure and manufacturing facilities.
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ITC Ltd, known for its diverse range of products from cigarettes to hotels, has outlined a bold investment strategy of ₹20,000 crore in the medium term. This move reflects the company’s strong belief in India’s growth potential and its commitment to expanding its global presence. More details on the specific areas of investment are expected to be disclosed in the near future.
Today, shares of ITC were trading at 496.40 INR up +6.45. or +1.26% at 2:00 P.M.
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